What does salvation by grace mean in Reformed theology?

In Reformed theology, salvation by grace emphasizes that it is entirely a work of God's sovereign will and unmerited favor, as outlined in Ephesians 2:8-9. This doctrine asserts that we are saved not by our works or merit, but through faith in Jesus Christ, who accomplished our redemption. It recognizes human inability to save themselves due to sin, thus exalting God's grace as the sole means of salvation. The grace of God is seen as affectionate and transformative, leading believers to live in gratitude and obedience to His commands as a response to His love.